APY (annual percentage yield)
APY
An annualised yield that accounts for compounding — the standard quote for variable-rate lending.
APY = (1 + r/n)^n − 1, where r is the periodic rate and n is the number of compounding periods per year. For variable-rate pools the headline APY is a snapshot; realised yield depends on rate persistence. StableLens displays APY alongside its Risk-adjusted APY so allocators can compare grossed-up vs. quality-adjusted returns side by side.
Related terms
- APR (annual percentage rate)A simple annualised yield rate that does not account for compounding.
- Risk-adjusted APYHeadline APY discounted by the StableLens risk model — comparable across protocols, chains, and structures.
- Native yieldYield that comes from underlying protocol revenue (interest, fees) rather than token emissions.
- Incentive yieldYield paid in tokens emitted by a protocol or partner, on top of the underlying native rate.